Fed Not Rushing to Rescue Investors with Rate Cut: WSJ

Discussion in 'Wall St. News' started by Cdntrader, Aug 30, 2007.

  1. Fed Not Rushing to Rescue Investors with Rate Cut: WSJ
    Topics:Interest Rates | Inflation | Ben Bernanke | Federal Reserve | Federal Budget (U.S.) | Economy (Global) | Economy (U.S.)
    By Reuters | 30 Aug 2007 | 04:21 AM ET
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    The U.S. Federal Reserve is not rushing to cut benchmark interest rates because it wants to break investors of the view that the central bank is there to bail them out, an article in the Wall Street Journal said on Thursday.

    Fed watcher Greg Ip, without quoting specific sources, said Fed Chairman Ben Bernanke was keen to draw a distinction between keeping financial markets ticking over and ensuring a sound economy.

    The article said there was a perception, while Alan Greenspan was chairman of the Fed, that the Fed would react to problems of financial stability by cutting rates but that Bernanke was keen to break the automatic assumption that market convulsions lead to interest rate cuts.

    The Fed cut the rate it charges banks for direct loans earlier this month amid financial market turbulence but has made no change to the benchmark Fed funds rate of 5.25%.
  2. no. 22

    no. 22

    Greg Ip is thought to be in the know.
  3. The Fed is privately owned by European families (central bankers) intent on fleecing the public of it's possessions through credit expansion and contraction
  4. Thank's for the post.

  5. [​IMG]
  6. Excellent first post. Is your next about martians?